Summary of responses to SITR summer 2014 consultation released
This publication proposes a summary of responses and the outcome of the consultation on enlarging the social investment tax relief (SITR) scheme. This details decisions taken by the government on raising the amount of investment organisations can receive through SITR; the application of SITR to social impact bonds (SIBs), community energy and agriculture schemes; and establishing a venture capital trust (VCT) like option for social investment in the future.
A thank you is extended to all organisations who contributed to the consultations.
The Government is seeking EU State aid clearance for a maximum of £5 million per organisation per year up to a total of £15 million and will make the change through secondary legislation following that process.
The Response document sets out the high level decisions on a new Social VCT. The further consultation announced at Autumn Statement will cover a large amount of detail on investments, investee organisations and operation of the Social VCT with a view to introducing legislation in the next Finance Bill after the election.
The Government is also committed to ensuring more types of Social impact bonds can qualify for SITR investment and will consult in early 2015 with a view to making necessary legislative changes later in the year.